Motor Insurance
Why should I buy it?
According to Thai law both passenger vehicles and motorcycles are required to have a minimum of compulsory insurance coverage. However, this provides only modest cover for damage to people, not property.
As a foreigner living in Thailand, it is critical to seek advice and ensure you obtain the best motor insurance for expats in Thailand – for example there are some companies who offer 24 hour roadside assistance help lines in languages such as English, French, German and Japanese which can be an invaluable aid if you are involved in a motor accident.
A brief drive in and around any urban area in Thailand should provide you with sufficient evidence to convince you that a more comprehensive insurance cover is probably more appropriate. In the event of an accident, you cannot rely on the other party having adequate insurance, and so there is every chance that the only insurance that you will be able to make a claim on is your own.
A cautionary note, driving in Thailand requires a valid Driver’s License this means that if you are a long-time stayer in the country and driving under a foreign country’s driver’s License then you may not have a valid driver’s license under Thai law. Check this requirement carefully as each Insurer have their own view on what is acceptable and what is not.
What should my motor insurance policy cover?
The coverage available varies with the age of the car, so choose the most comprehensive policy you can. The format, coverage and price should not vary much from company to company, so select a reputable insurance company that covers:
- Medical Treatment to cover injury to the driver, passengers and any third party
- Third Party Liability to cover any damage you may cause to people and/or property
- Damage to your own vehicle
- Bail Bond as necessary if you are arrested and detained by the police
- Personal Accident for injury to driver, passenger and any third party
The levels of cover offered in the event of an accident may not be what you expect. For example, the benefit for medical expenses on many First-Class policies is limited to 200,000 Baht per person, which this is likely to be inadequate in the event of a serious accident.
Car Insurance Value-Added Services
Some of the policies available offer add-ons which can be quite attractive to any motorist. These include:
- Roadside assistance
- 24-hour English-speaking hotline numbers
- Courtesy cars if your car is off the road for a prolonged period.
- Accommodation if you are stranded away from home
- Installment payments of the premium (e.g. monthly)
Roadside assistance
Cars have become more and more reliable and mechanical or electrical breakdowns are far less frequent than they used to be. However, even if your car is relatively new, please consider the following:
- According to one leading roadside assistance company, more than 36% of the services they provided involved vehicles less than one year old.
Discount on your motor insurance
Did you know that most of Insurance in Thailand provide the discount if you;
- Install the Dash cam
- A No Claim Bonus, if you have not claimed under your policy during the policy year
- Specify a named driver
How to Buy Motor Insurance?
Type 1
Car insurance offers your vehicle the highest level of protection but it is also the most expensive.
Type 2
Car insurance helps when you have had a few car accidents or you’re on a tight budget, Type 2 car insurance provides your vehicle necessary protection with a slightly lower insurance premium when compared to Type 2+ car insurance.
Type 3
Car insurance provides your vehicle with basic protection and with a much lower insurance rate when compared to Type 3+ car insurance. This insurance helps if you drive an older model vehicle, or you use your vehicle infrequently.
Compulsory insurance
Offers a lower level of protection compared to other voluntary vehicle insurance policies, but nonetheless still offers some basic protection on the road.
The of course we have coverage for older vehicles and smaller vehicles that relatively cheap to repair and insure.